BANGKOK, THAILAND – Thailand’s central bank imposed tighter scrutiny on large foreign currency transfers in a bid to block illegal flows and protect the baht.
New rules for large foreign currency deals
The Bank of Thailand instructed commercial banks to examine major foreign transactions more closely, targeting three areas: exchange of foreign currency into baht, deposits into foreign currency deposit accounts and the sale of foreign cash. A new threshold of 200,000 US dollars per transaction, equivalent to about 6.3 million baht, now required documentary proof of origin.
Small share of deals, big share of value
Deputy governor Pimpan Charoenkwan said the stricter guidelines applied because large transfers, while only 15 percent of all transactions, accounted for 85 percent of total value and heavily influenced the exchange rate.
“The existing thresholds could be abused for undesirable activities.”
said Pimpan Charoenkwan, deputy governor.
Focus on property, crypto and gold money
Banks now had to verify the source of dollars for every six-figure transfer, with exceptions only for established corporate clients. Funds from property sales to foreigners, profits from the sale of digital assets such as cryptocurrency and other capital inflows were singled out for extra scrutiny. Foreign exchange from gold sales abroad also had to be fully documented, as the central bank sought to close remaining loopholes.
Limited impact on tourists and expats
Everyday transactions by tourists and expatriates were not affected, as routine transfers and smaller exchanges remained unchanged. Individuals and companies moving large sums from non-routine business activities into Thailand, however, had to expect more paperwork and questions. Banks were required to match customer information with supporting evidence such as contracts or tax documents.
Protecting the baht and cleaning up flows
The measure formed part of a broader effort to shield the Thai baht from excessive appreciation that could hurt exports and tourism. At the same time, the authorities aimed to curb illegal financial flows and money laundering, bringing Thailand closer to international standards.
“It is about the stability and integrity of our financial system.”
said a central bank insider.
Bank and expert reactions to the clampdown
Major commercial banks had already implemented the new rules and anticipated higher administrative burdens, but said they supported the objective. Economic analysts viewed the tightening as a necessary compromise, arguing that clear regulations could increase security for all market participants. For Thailand, the policy remained a balancing act: welcoming capital while keeping speculation and criminal activity at bay.